Lifetime ISA bonus question

pink_pirlie

I can't seem to find a definitive answer anywhere or guidance on the bonus top up apart from for 17/18 will be paid in April 18 and after that monthly.

Assuming the ISA is opened now and filled with the full £4000 the £1000 top up for 17/18 will add in April 18.
My question is - If I then add the full allowance of £4000 in April 18 do you get the £1000 top up in May (Hargreaves says 6th day of the following month) or is the 25% added gradually over the financial year?

We are thinking of buying a home around this time next year so H2B or stocks and shares are our only options.

We have H2B now but if we could get the bonus on £8000 instead of £2600 we would save in the H2B in the same 13 months this would be a huge incentive to transfer to the Lifetime.

masonic

After the end of this tax year, it is added (in full) the month after a qualifying deposit is made.

pink_pirlie

Brill - that's fab. The news I wanted!

Thank you for your help.

Jaglad111

I'm in the same boat as you, buying hopefully may next year. I opened mine with hl too, did you leave it as cash or invest in stocks? I left mine as cash.

pink_pirlie

We just opened last night one for my partner (I am already a home owner so not able to gain from the scheme). We have just put the minimum £100 in for now and didn't pick investments yet. We will have a look in more detail over the weekend.

We will keep putting money in the H2B ISA until March and then transfer that into the LISA and add the additional £1500 up to the £4000 allowance.

We were planning on selling up my place (which is currently let out) in march next year and buy concurrently, but to get the extra bonus it is worth the extra month wait. Plus we don't know how long my place will take to sell.

We have our savings currently making 5% so unless the stocks and shares LISA performs better than that it doesn't make sense to transfer the £1500 into it now. We will keep an eye on it for the next few months and then reassess.

We will fill up our 5% allowances soon so will have to start thinking about where else to save with a good return.

I will probably start to overpay my mortgage though as one part is over 4% interest but it makes no sense to remortgage when we plan on selling next year.
The fees outweigh any interest rate benefit over the short period.

Good luck to you!!!

Jaglad111

Thanks Pink, it's a shame the high street banks are behind on offering products otherwise there would be far more information available. Luckily my partner and I are both first timers so between us we are fortunate to have the two htb isa's and also the Lisa's. Nice little pot for them to rob back in stamp duty.

kidmugsy

pink_pirlie wrote: »

We just opened last night one for my partner (I am already a home owner so not able to gain from the scheme).

That does work all right does it - one of you using the LISA when the other one isn't eligible? I'm glad to hear it.

pink_pirlie

Yes you so long as the LISA is in his name it's no issue. They are person specific and he is a first time buyer so all good :-)